03.16.15
Franklin Lakes, N.J.-based Becton Dickinson and Company (BD) has earned clearance from the European Commission under the EU Merger Regulation for the pending acquisition of CareFusion corporation, based in San Diego, Calif. The proposed acquisition has now received all necessary regulatory approvals. BD is paying CareFusion $12.2 billion in stocks and cash for the deal.
The proposed acquisition, which was approved by CareFusion shareholders in January, remains subject to customary closing conditions. BD and CareFusion currently expect the proposed acquisition to close on March 17. Approximately 76 percent of CareFusion shareholders were in favor of the acquisition.
Zacks analysts noted that BD has already identified $250 million in cost cuts that will come from reducing overhead expenses, and combining manufacturing footprint and operations. The savings are expected to be fully realized in fiscal 2018. The transaction is also anticipated to provide Becton, Dickinson with double-digit earnings growth, on an adjusted basis, in the first full year. Apart from earnings growth, the deal is likely to expand EBITDA margins, and deliver strong cash flow and return on invested capital.
BD is a diversified medical technology company, while Carefusion makes medical products including infusion pumps, IV connectors and pumps, automated dispensing and patient identification systems, ventilation and respiratory products and surgical instruments.
The proposed acquisition, which was approved by CareFusion shareholders in January, remains subject to customary closing conditions. BD and CareFusion currently expect the proposed acquisition to close on March 17. Approximately 76 percent of CareFusion shareholders were in favor of the acquisition.
Zacks analysts noted that BD has already identified $250 million in cost cuts that will come from reducing overhead expenses, and combining manufacturing footprint and operations. The savings are expected to be fully realized in fiscal 2018. The transaction is also anticipated to provide Becton, Dickinson with double-digit earnings growth, on an adjusted basis, in the first full year. Apart from earnings growth, the deal is likely to expand EBITDA margins, and deliver strong cash flow and return on invested capital.
BD is a diversified medical technology company, while Carefusion makes medical products including infusion pumps, IV connectors and pumps, automated dispensing and patient identification systems, ventilation and respiratory products and surgical instruments.